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INCOME TAXES (Tables) | 12 Months Ended
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Jun. 30, 2017
Income Tax Disclosure [Abstract] |
Income before Income Tax | The components of income (loss) from continuing operations before income taxes are as follows (in thousands):
|  | Year Ended June 30, |
|  | 2017 |  | 2016 |  | 2015 |
U.S. |  | $ | (10,419) |  | $ | (131,615) |  | $ | 33,693 |
Foreign |  |  | 144,813 |  |  | 114,317 |  |  | 119,967 |
Total |  | $ | 134,394 |  | $ | (17,298) |  | $ | 153,660 |
Income Tax Provisions (Benefits) | The income tax provisions (benefit) related to the above results are as follows (in thousands):
|  | Year Ended June 30, |
|  | 2017 |  | 2016 |  | 2015 |
Income Tax Provision (Benefit): |  |  |  |  |  |  |  |  |  |
Current Tax Provision |  |  |  |  |  |  |  |  |  |
U.S. Federal |  | $ | (2,222) |  | $ | 20,226 |  | $ | 10,146 |
State and Local |  |  | 2,458 |  |  | 4,295 |  |  | 2,756 |
Foreign |  |  | 3,777 |  |  | 2,685 |  |  | 2,602 |
Total Current |  |  | 4,013 |  |  | 27,206 |  |  | 15,504 |
Deferred Tax Provision (Benefit): |  |  |  |  |  |  |  |  |  |
U.S. Federal |  |  | 43 |  |  | (40,457) |  |  | (45) |
State and Local |  |  | 1,285 |  |  | (5,441) |  |  | (486) |
Foreign |  |  | 5,079 |  |  | 4,150 |  |  | 3,564 |
Total Deferred |  |  | 6,407 |  |  | (41,748) |  |  | 3,033 |
Income Tax Provision (Benefit) |  | $ | 10,420 |  | $ | (14,542) |  | $ | 18,537 |
Income Tax Provisions Computed using Statutory U.S. Federal Rate | The income tax provisions (benefit) differ from those that would be computed using the statutory U.S. federal rate as a result of the following items (in thousands):
|  | Year Ended June 30, |
|  | 2017 |  | 2016 |  | 2015 |
Income Tax at Statutory Rate |  | $ | 47,038 |  |  | 35.0 | % | $ | (6,054) |  |  | 35.0 | % | $ | 53,787 |  |  | 35.0 | %
Lower Rates on Foreign Operations |  |  | (42,911) |  |  | (31.9) | % |  | (33,213) |  |  | 192.0 | % |  | (36,428) |  |  | (23.7) | %
State Income Taxes |  |  | 1,063 |  |  | 0.8 | % |  | (1,012) |  |  | 5.9 | % |  | 2,320 |  |  | 1.5 | %
Nondeductible Tax Items |  |  | 3,686 |  |  | 2.8 | % |  | 2,080 |  |  | (12.0) | % |  | 953 |  |  | 0.6 | %
Nondeductible Goodwill |  |  | - |  |  | 0.0 | % |  | 23,957 |  |  | (138.5) | % |  | - |  |  | 0.0 | %
Other |  |  | 1,544 |  |  | 1.1 | % |  | (300) |  |  | 1.7 | % |  | (2,095) |  |  | (1.3) | %
Income Tax Provision (Benefit) |  | $ | 10,420 |  |  | 7.8 | % | $ | (14,542) |  |  | 84.1 | % | $ | 18,537 |  |  | 12.1 | %
Deferred Tax Assets (Liabilities) | Deferred income tax assets (liabilities) result primarily from temporary differences in the recognition of various expenses for tax and financial statement purposes, and from the recognition of the tax benefits of net operating loss carryforwards. These assets and liabilities are composed of the following (in thousands):
|  | Year Ended June 30, |
|  | 2017 |  | 2016 |  | 2015 |
Loss and Credit Carryforwards, Net |  | $ | 37,569 |  | $ | 24,213 |  | $ | 21,544 |
Employee Benefits |  |  | 19,758 |  |  | 17,820 |  |  | 17,852 |
Stock-Based Payments |  |  | 18,130 |  |  | 21,239 |  |  | 17,136 |
Deferred Rent |  |  | 17,588 |  |  | 22,135 |  |  | 24,102 |
Receivable Reserve |  |  | 13,140 |  |  | 20,158 |  |  | 20,043 |
Restructuring Reserve |  |  | 16,484 |  |  | 18,820 |  |  | 8,903 |
Other Reserves |  |  | 6,701 |  |  | 3,978 |  |  | 3,519 |
Less: Valuation Allowance |  |  | (9,456) |  |  | (8,624) |  |  | (10,552) |
Gross Deferred Tax Assets |  |  | 119,914 |  |  | 119,739 |  |  | 102,547 |
Depreciation |  |  | (11,730) |  |  | (24,217) |  |  | (25,860) |
Amortization of Intangible Assets |  |  | (109,124) |  |  | (72,850) |  |  | (91,321) |
Gross Deferred Tax Liability |  |  | (120,854) |  |  | (97,067) |  |  | (117,181) |
Net Deferred Taxes |  | $ | (940) |  | $ | 22,672 |  | $ | (14,634) |
Net Operating Loss and Credit Carryforwards | Adtalem has the following tax net operating loss (tax effected) and credit carryforwards as of June 30, 2017:
|  | June 30, |  | Years of Expiration |
|  | 2017 |  | Beginning |  | Ending |
U.S. Net Operating Loss Carryforwards |  | $ | 11,246 |  |  | 2037 |  |  | 2037 |
U.S. Credit Carryforwards |  |  | 271 |  |  | 2027 |  |  | 2027 |
State Net Operating Loss Carryforwards |  |  | 6,772 |  |  | 2018 |  |  | 2037 |
State Credit Carryforwards |  |  | 7,020 |  |  | 2018 |  |  | 2027 |
Foreign Net Operating Loss Carryforwards |  |  | 6,032 |  |  | 2021 |  |  | 2037 |
Foreign Net Operating Loss Carryforwards |  |  | 6,228 |  |  | No Expiration |
Gross Deferred Tax Assets |  | $ | 37,569 |  |  |  |  |  |  |
Changes in Unrecognized Tax Benefits | The changes in our unrecognized tax benefits were (in thousands):
|  | Year Ended June 30, |
|  | 2017 |  | 2016 |  | 2015 |
Beginning Balance, July 1 |  | $ | 7,497 |  | $ | 8,475 |  | $ | 9,135 |
Increases from Positions Taken During Prior Periods |  |  | 1,397 |  |  | 346 |  |  | 3,089 |
Decreases from Positions Taken During Prior Periods |  |  | (1,445) |  |  | (1,716) |  |  | (4,352) |
Increases from Positions Taken During the Current Period |  |  | 452 |  |  | 392 |  |  | 603 |
Ending Balance, June 30 |  | $ | 7,901 |  | $ | 7,497 |  | $ | 8,475 |

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